28 Feb 2024 14:06

Ukrainian Railways submits projects worth over 80 mln euros to CEF Transport Call

MOSCOW. Feb 28 (Interfax) - JSC Ukrainian Railways (Ukrzaliznytsia) has submitted projects worth more than 80 million euros to the 2023 Connecting Europe Facility (CEF) Transport Call, Ukrainian media said, citing information circulated by Ukraine's Restoration Ministry on social media.

"Ukrzaliznytsia expects the results of the 2023 CEF Transport Call to be announced in June of this year. They should approve financing for projects to develop railway crossings on the border with the EU worth over 80 million euros. The projects [submitted by Ukrainian Railways] envisage drafting a strategy for developing the European-gauge [1,435 mm] rail tracks of the Lvov railway hub," the ministry said.

Ukrainian Railways' project proposal also calls for an assessment of the Medyka/Mostyska II-Lvov (Sknilov) border crossing, a ministry spokesperson told media.

"In accordance with JSC Ukrzaliznytsia's project proposal submitted to the EU's 2023 CEF Transport Call for grant financing, a component of the project is an assessment to verify compliance of the 1,435mm rail track at the Medyka/Mostyska II-Lvov (Sknilov) section with the TSI requirements. The assessment is an important element of the compatibility of the technical systems of Ukrainian and European railroads that will precede construction and assembly work at this facility," the ministry said.

Last summer, the European Union's strategy for integration of the railroads of Ukraine and Moldova with the EU's identified the Mostyska-Sknilov section as a priority project, it said.

"We expect EU institutions and banks to co-finance this project as the next step," the ministry said.

Ukrainian Railways' project submitted to the 2023 CEF Transport Call with the prospect of financing under the CEF mechanism include a feasibility study for laying 1,435mm rail tracks at the Chop-Lvov section, reconstructing railroad facilities, laying 1,435mm rail tracks and providing power supply to the Lvov-Chernovtsy-Vadul Siret-State Border and Pavlovo 2/ Matevtse-Uzhgorod railroad sections, the ministry said.

In May 2022, the European Commission announced a set of measures to establish the Solidarity Lanes to help Ukraine restore supply chains and agricultural exports.

"The European Commission reaffirmed its readiness to boost the infrastructure potential of the new export corridors and establish new infrastructure links as part of Ukraine's recovery. In this context, the CEF has become a key program for improving transport links between the EU and Ukraine, developing the Trans-European Transport Network [TEN-T] and facilitating exports from Ukraine to the EU," the ministry said.

The Connecting Europe Facility is a key EU funding instrument created in 2014 for investing in transport, energy, digital and telecom projects as part of EU infrastructure. Its goal is to bolster ties between EU member countries. A condition for financing projects under the CEF mechanism is that the CEF's co-financing is set at 50% of a project's cost, while the other 50% are covered by a country's own funds or using international loans.

Ukrainian Railways CEO Yevgeny Lyashchenko said earlier that Ukraine had been unable so far to receive financing under the CEF program to build the Mostyska-Sknilov railroad from the border with Poland to Lvov. The United States Agency for International Development is considering the possibility of covering 50% of the project's cost, he said.

Ukrainian Deputy Prime Minister and Communities, Territories and Infrastructure Development Minister Alexander Kubrakov, in turn, said that the construction of the Mostyska-Sknilov railroad from the border with Poland to Lvov would start in 2024.